Abstract
The sustainable development requires policies and measures which negative impacts would not be spilled over on another area or has trends that pose severe or irreversible threats to future quality of life. The environmental costs-benefits analysis (CBA) as well as multi criteria analyse are the most common used methods for the decision making processes including the approved methodology for quantifying external costs especially regarding air quality. Since the reducing one type of external cost generates another external cost due to fact that the problem is only shifted from the one area to the another CBA is not enough for the decision making process because external cost of a future implemented measure isn't considered. By the usage of Life-cycle costing (LCC), a tool which evaluates the costs of an new installed asset imposed trough the adopted policy or measure throughout its life cycle, it is possible beside the common costs for conducting CBA include also the end-of-life and disposal costs as the new installed asset's external costs too. These costs have to be calculated and added to the cost side of CBA before comparing to the benefits. So, for the purpose of decision making process of the retrofitting existing thermal power plants with DeSOx such calculation has been done as a case study for one thermal power plant in Bosnia and Herzegovina highlighting overall costs and benefits of the DeSOx installation.
Highlights
External cost’s application, among others, is in a very important field - performance of environmental cost-benefit analyses (CBA) for the policies and measures that aim to reduce environmental and health impacts
Obtained results of the CBA and the fact that all impacts still cannot be monetised on scientifically acceptable manner reveals that the CBA cannot be the only parameter for the decision making
According KEMA study [5] toxicity of limestone dust is more near toxicity of PPM2.5 rather than toxicity of PPMco, so authors have chosen to show on Figure 6 differences between avoided damages and all imposed costs for different increased external costs due to cogeneration
Summary
External cost’s application, among others, is in a very important field - performance of environmental cost-benefit analyses (CBA) for the policies and measures that aim to reduce environmental and health impacts. Benefits are expressed as avoided external costs. To calculate the avoided external costs, it is necessary to create at least two scenarios: a business as usually (BAU) or baseline scenario, which describes a condition without the implementation of any measure or policy and a scenario with included measure. If benefits are larger than costs, the policy or measure is beneficial for society’s welfare [1]. When one calculates costs of proposed policies or measures the common practice is to calculate only investment and operative and maintenance (O&M) costs of abatement equipment and costs are compared to the benefits.
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